Farmers & Merchants State Bank, an Idaho Banking Corporation v. Western Bank, an Oregon Banking Corporation

NELSON, Circuit Judge:

Western Bank (“Western”) appeals from a decision of the district court, holding it liable to Farmers & Merchants State Bank (“F & M”) in the amount of $708,133.07 plus interest, costs, and attorney’s fees. Both banks were victims of a check-kiting scheme. F & M brought this diversity action to recover from Western the amount of a cashier’s check drawn by and on Western, payable to ah F & M customer. Western issued the check to F & M in settlement for thirteen checks drawn by a Western customer and presented for payment to Western by F & M. When Western refused to honor…